The Most Common Reasons Business Owners Do Not Maintain Their Financials

If you are a parent, you keep track of your children all day, every day. If you have a dog, you care for it, walk it and make sure it has enough food and water. If you have a yard, you probably maintain the lawn and your plants and flowers, right?

However, as a business owner, do you maintain your books, receipts, and keep track of your spending in a timely manner?  If so, kudos to you! That’s more than half the battle in operating a business today. Many business owners do not maintain their financials.

If you do not maintain your books on a regular basis, you’re not alone.

Below are several common reasons why many business owners do not maintain their books and it begins with “Lack of …”:

  1. Time
  2. Understanding how to keep my books updated.
  3. Access to tools and/or resources.
  4. Caring behind the importance of maintaining your books and keeping them updated (the importance being three letters: IRS).

We understand that there are simply not enough hours in a day. We get it. However, with some encouragement and a few helpful tips, committing to a routine with your books is only the creation of a new habit.

Tips from the experts who do work hard to maintain their financials:

  • Honesty is the best policy. Ask yourself, am I the best person to maintain my books? If your answer is yes, why? If your answer is no, then who is? Success begins with having the right person in place. Is it someone on your team? Or, would your business run more efficiently having a bookkeeping service in place? Keep Financials can help! Contact us, today.
  • What tools or resources do you have in place to maintain your books? Whether it’s Quickbooks, an Excel sheet, a Google doc or another form of online tracking, figure out what tool will be most conducive for your operation, and then get it up and running and commit to it.
  • Commit to timely, accurate and up-to-date entries. It has been said that it takes anywhere from two weeks to a month to create a habit. Set up a recurring reminder on your calendar—set it for the same time with each reminder. This should be a time that works well within your day or your week. If first thing in the morning is best, then that time is for you; if over lunch works, there you go. If the end of the day works best when things are most quiet, that’s your winning ticket of time.
  • Alleviate the “lack of” reasons and realize that bookkeeping is a necessary part of your business’ stability and growth. As you update your books on a basis identified as comfortable and approachable for you, you will come to a realization of what you are spending, where you are spending, and if you are spending in the right places, for the right purposes and on the right people.

Need help getting started? Need someone to talk to? It’s what we do. Keep Financials can help you get started and we are happy to start the conversation with you today.

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